Fiscal Cliff MEGATHREAD: Wile E. Economy falls off, lands in cloud at bottom

[Admiral Yi]

I think that was dps Raz.

[The Brain]

I prefer healer Raz.

[DontSayBanana]

Social Security has its own dedicated tax, as does Medicare/Medicaid. 

Whether it "comes out of the general fund" or not is a bit of a semantic issue.

I hate to say it, but Yi's right on this one.  It's mainly paid by the Social Security Trust Fund, which is where the tax goes, separate from your federal income tax, but it's supplemented by the general fund (since 2010, when more started being paid out than being collected in social security taxes).

Actually, if we're going to take a token pound of flesh from the wealthy, I'd prefer to see it be the social security taxable salary cap removed- as of right now, it's $110,000.  So Joe Schmo who's been grinding along as a senior network engineer for ten years is paying at least the same amount of social security tax as Mitt Romney or even Warren Buffett.

[sbr]

Social Security has its own dedicated tax, as does Medicare/Medicaid. 

Whether it "comes out of the general fund" or not is a bit of a semantic issue.

I hate to say it, but Yi's right on this one.  It's mainly paid by the Social Security Trust Fund, which is where the tax goes, separate from your federal income tax, but it's supplemented by the general fund (since 2010, when more started being paid out than being collected in social security taxes).

Actually, if we're going to take a token pound of flesh from the wealthy, I'd prefer to see it be the social security taxable salary cap removed- as of right now, it's $110,000.  So Joe Schmo who's been grinding along as a senior network engineer for ten years is paying at least the same amount of social security tax as Mitt Romney or even Warren Buffett.

Do they withhold social security from capital gains and investment income?  I bet Joe actually pays a lot more than Mittens and Warren.

[Admiral Yi]

I hate to say it, but Yi's right on this one

Another fan.

[alfred russel]

Do they withhold social security from capital gains and investment income?  I bet Joe actually pays a lot more than Mittens and Warren.

They don't--the tax is only on earned income up to $110k or so. But--I would think that both Romney and Buffett have that much earned income and are paying max social security taxes.

[sbr]

Do they withhold social security from capital gains and investment income?  I bet Joe actually pays a lot more than Mittens and Warren.

They don't--the tax is only on earned income up to $110k or so. But--I would think that both Romney and Buffett have that much earned income and are paying max social security taxes.

I wasn't sure if either of then actually had a wage paying job that would have anything like that withheld.  It was just off the top of my head though so I am likely wrong.

[Admiral Yi]

I'm pretty sure Buffet gets a salary as CEO of Berkshire Hathaway.

Don't know what Mitt woul be getting a salary for.

[alfred russel]

I'm pretty sure Buffet gets a salary as CEO of Berkshire Hathaway.

Don't know what Mitt woul be getting a salary for.

Speaking fees? I assume he has some earned income coming from somewhere, but I don't know that.

[Admiral Yi]

Speaking fees?

Look at the big brain on Fredo!

Come to think of it, he probably sits on a number of boards too.

[MadImmortalMan]

Buffett gets a hundred grand as salary. Presumably it makes no sense to get more than that, since it would provide all he needs to fit the limits to 401k contributions and reach the SSA cap. Making more would just raise his tax liability. Yes, I see the irony.

[Admiral Yi]

Buffett gets a hundred grand as salary. Presumably it makes no sense to get more than that, since it would provide all he needs to fit the limits to 401k contributions and reach the SSA cap. Making more would just raise his tax liability. Yes, I see the irony.

  He would still get 65 cents for every dollar raise he gave himself.

[MadImmortalMan]

  He would still get 65 cents for every dollar raise he gave himself.

Yeah but if he takes stock instead he'll get 85 cents of every dividend dollar.

[Admiral Yi]

Yeah but if he takes stock instead he'll get 85 cents of every dividend dollar.

I'm not positive, but I don't think options are part of his package either.

[DGuller]

  He would still get 65 cents for every dollar raise he gave himself.

Yeah but if he takes stock instead he'll get 85 cents of every dividend dollar.

What do you mean by "takes stock"?  If you mean pay himself by giving himself dividends, that it would only work if he owned the whole company, or a pretty large piece of it anyway.  You can't really give out targeted dividends to only one shareholder, at least not without getting charged with embezzlement.